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It's been a mediocre week for Westport Fuel Systems Inc. (TSE:WPRT) shareholders, with the stock dropping 16% to CA$4.86 in the week since its latest full-year results. It was a pretty bad result overall; while revenues were in line with expectations at US$302m, statutory losses exploded to US$1.27 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the recent earnings report, the consensus from four analysts covering Westport Fuel Systems is for revenues of US$219.8m in 2025. This implies a substantial 27% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 35% to US$0.82. Before this latest report, the consensus had been expecting revenues of US$292.6m and US$0.73 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.
View our latest analysis for Westport Fuel Systems
There was no major change to the consensus price target of CA$99.98, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Westport Fuel Systems' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 27% by the end of 2025. This indicates a significant reduction from annual growth of 3.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.3% per year. It's pretty clear that Westport Fuel Systems' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at CA$99.98, with the latest estimates not enough to have an impact on their price targets.